Brokers plan to take on more bridging loans

Nearly two-thirds of brokers expect to increase their use of bridging loans over the next 12 months, according to a survey carried out by United Trust Bank.

The results of the survey show that 62 per cent expect to place more bridging business over the next year and 63 per cent expect rates and charges to remain unchanged in the near future.

Less than half are positive about the prospects for their business over the next three years, with just 47 per cent reporting that their outlook is optimistic. Only 3 per cent went as far as to describe their outlook as ‘worried.’

United Trust Bank’s head of bridging Alan Margolis says bridging lenders’ interest rates and charges have remained fairly static for some time now, despite some increased competition from a few new entrants.

He says: “Most brokers accept that it would take a significant change in the Bank of England base rate for it to influence bridging lenders and with disappointing economic growth forecasts and more quantitative easing on the way, a change from the Bank of England in the near future looks unlikely.”